You might even have come across mobile insurance as an optional checkbox when signing up for a new phone line. As phones get more expensive, advanced and indispensable, the idea of insuring your precious mobile phone isn’t as absurd as it once was.
In this article, we find out what exactly mobile phone insurance is, what it covers and what it doesn’t, and whether it’s worth getting or not!
What is mobile phone insurance?
Few of us can imagine leaving home (or even visit the loo) without our phones. For better or worse, this high usage means our phones are more exposed to accidental damage, theft and device malfunctions.
And with iPhones and the like costing an arm and a leg, mobile phone insurance gives users peace of mind for the pocket supercomputers that we’ve come to rely so heavily upon.
Researchandmarkets.com did a study on the global mobile phone insurance market and found that it has reached a value of US$27.2 billion (S$36 billion) in 2020.
Now, while the idea of mobile insurance sounds good in theory, the offerings that have popped up in the market leave a lot to be desired. Let’s take a look at what’s available.
What are the types of mobile phone insurance?
| Provider | Telco | Insurer | Manufacturer |
| How it works |
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| What it usually covers |
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| Perks |
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| Disadvantages |
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| Products | Circles Life PhoneProtect | Citibank Lifestyle Guard (AXA) | AppleCare+ |
Mobile phone insurance comes from 3 main providers: telcos (like Singtel or Starhub), hardware manufacturers (looking at you, Apple) and insurance companies.
When you get a new phone, you can buy phone insurance from any of these providers. But each one has different coverage and price structures, so it can be hard to decide which one is best.
1. Telco-issued mobile phone insurance
If you’ve signed up for a new phone line or re-contracted your existing plan recently, you might have come across a checkbox asking if you’d like to insure your phone for a small fee every month.
Generally, telco-issued mobile phone insurance is rather basic in terms of its coverage. It usually covers cracked screens, water damage and the like, but not loss or theft.
The telco usually packages it with yearly handset upgrades and/or do replacements via a like-for-like system where:
- The phone is either the same model or slightly different
- The phone is new or refurbished
- The phone might be of a different colour or brand
- The phone might be packaged in plain packaging marked “not for resale” rather than its retail packaging
- The phone does not include any device accessories
SingTel MobileSwop Unlimited
SingTel commits the mortal sin of spelling “swap” as “swop”. But I can overlook my pet peeve as it’s offers unlimited phone swaps — quite a good deal if you’re the type who wants to upgrade your phone all the time. That said, you’ll need to pay a fee every time you swap your phone.
|
Premium |
$9.90, charged monthly (MobileSwop Unlimited) $12.90, charged monthly (MobileSwop Unlimited Premium) |
|
Coverage |
Phone repair
Phone replacement Phone swap Phone device support (MobileSwop Unlimited Premium only) |
|
Exclusions |
Cosmetic damage
Wear-and-tear Loss or theft |
|
Claim limit |
1 replacement or unlimited swaps per year |
|
Additional fees? |
Yes, you are required to top up on replacement or repair fees, depending on your device |
StarHub SmartSupport
StarHub SmartSupport costs $12 a month and is similar to Singtel’s — except that swaps are capped at 2 swaps a year.
|
Premium |
$12, charged monthly |
|
Coverage |
Phone repair
Phone replacement (local & overseas) Phone swap (local & overseas) Phone device support |
|
Exclusions |
Cosmetic damage
Wear-and-tear Loss or theft |
|
Claim limit |
1 replacement or 2 swaps per year |
|
Additional fees? |
Yes, you are required to top up on replacement or repair fees, depending on your device |
M1 FoneCare+
M1’s mobile phone insurance, FoneCare+, starts from $9.90 a month. Don’t bother upgrading to FoneCare+ Pro because you’re basically paying an extra $2 a month for device support.
|
Premium |
$9.90, charged monthly (FoneCare+) $11.90, charged monthly (FoneCare+ Pro) |
|
Coverage |
Phone repair
Phone replacement Phone swap Phone device support (FoneCare+ Pro only) |
|
Exclusions |
Cosmetic damage
Wear-and-tear Loss or theft |
|
Claim limit |
1 replacement or 2 swaps a year |
|
Additional fees? |
Yes, you are required to top up on replacement or repair fees, depending on your device |
Circles.Life PhoneProtect
Circles.Life provides mobile phone insurance at $7 a month. It is underwritten by HL Assurance and the claims process is simple and seamless via the Circles.Life app.
|
Premium |
$7, charged monthly |
|
Coverage |
Phone repair
Phone replacement |
|
Exclusions |
Cosmetic damage
Wear-and-tear Loss or theft |
|
Claim limit |
Once per tenure |
|
Additional fees? |
Yes, you are required to top up on replacement or repair fees, depending on your device |
2. Insurer-issued mobile phone insurance
Insurance companies’ coverages for mobile phones is a lot more comprehensive, and it usually extends to other electronics as well. They also include loss, thefts and worldwide coverage.
But for that increased coverage, you’ll pay quite a hefty premium — up to twice the price that telcos charge. Still, if you’re paranoid or tend to lose things easily, this one might be for you.
Citibank Lifestyle Guard (AXA)
Underwritten by AXA, Citibank’s Lifestyle Guard mobile phone insurance extends to other items such as laptops and even sunglasses. It includes an extended warranty for 12 months, but only if you charge your phone’s purchase through their credit card.
| Citibank Lifestyle Guard (AXA) | |
| Premium | $17.90, charged monthly
$199, charged yearly |
| Coverage | Phone repair
Phone replacement (local & overseas) Phone swap (local & overseas) Phone theft or loss (local & overseas) |
| Exclusions | Cosmetic damage
Wear-and-tear Damage caused intentionally |
| Claim limit | Limited by documents you have to produce |
DBS Mobile Protect (Chubb)
DBS Mobile Protect is underwritten by Chubb, and it’s the only mobile phone insurance to cover loss of cash via withdrawal or PayLah. It also covers you in the event that the thief uses your phone to make expensive phone calls, as well as loss of important documents.
However, the claims process is via a phone call or email to Chubb, which might be a turn off to some because it’s kind of a hassle.
| DBS Mobile Protect (Chubb) | |
| Premium | $15, charged monthly
$180, charged yearly |
| Coverage | Phone repair
Phone replacement Phone swap Phone theft or loss |
| Exclusions | Cosmetic damage
Wear-and-tear |
| Claim limit | Up to 3 phone repairs 1 replacement in the event of loss or theft $500 total reimbursement for unauthorised withdrawal of cash, $100 per claim$500 total reimbursement for unauthorised PayLah! Use, $100 per claim$500 total reimbursement for loss of documents, $100 per claim$250 total reimbursement for unauthorised phone usage while phone is lost or stolen |
PhoneProtect360 (HL Assurance)
Compared to the other two mentioned above, HL Assurance’s coverage is decidedly basic. It only covers phone repairs and replacement.
Its range of repairs are much wider than what telcos offer though. Telcos generally only offer water damage and cracked screen repairs, but HL Assurance covers malfunctioning home button, mics, cameras, charging port, etc.
Only get this insurance if your phone is out of warranty and you don’t want to spend money buying a new phone.
| PhoneProtect360 (HL Assurance) | |
| Premium | From $108, charged annually |
| Coverage | Phone repair
Phone replacement |
| Exclusions | Cosmetic damage
Wear-and-tear |
| Claim limit | $1,000 for phone replacement $480 for cracked screen $330 for water-damaged motherboard $150 for faulty home button $138 for faulty charging port $138 for faulty cameras $130 for faulty mic/speaker $118 for faulty vibration motor |
3. Manufacturer-issued mobile phone insurance i.e. AppleCare+
Whilst there are other mobile phone manufacturers out there offering mobile phone insurance in the form of extended warranties, none of them are quite as legendary as Apple’s AppleCare+.
Apple has built a reputation for itself as being the leader for customer service — if you’ve been to any Apple repair centre before, you’ll find that they’d just swap your device for a new one instead of repairing it if it’s under warranty.
That being said, its coverage only extends to device faults or faulty software, and you need to purchase separate AppleCare+ coverage if you have multiple Apple devices. That means one AppleCare+ for your iPhone, another AppleCare+ for your AirPods Pro, and another AppleCare+ for your iMac! That’s a lot of money adding up!
| AppleCare+ | |
| Premium | From $269, charged upon purchase or 60 days after purchase of iPhone |
| Coverage | Phone repair
Phone replacement Phone software support |
| Exclusions | Cosmetic damage
Wear-and-tear Loss or theft |
| Additional fees? | $42 service charge for phone screen replacement $148 service charge for other phone-related issues |
What should I consider before getting mobile phone insurance?
Apparently, mobile phone insurance isn’t all that cheap. It can cost anything from $84 to $269 a year (and in some cases doesn’t even cover basic things like phone theft!). Should you even consider it?
Here are some questions to ask yourself before getting mobile phone insurance:
- What is my mobile phone for? Is it important for work? Will I be using my phone to communicate sensitive information?
- How do I treat my mobile phone? Am I clumsy or careful? Are my hobbies of an active nature, where I could put my phone at risk of dropping or malfunctioning?
- How expensive is my mobile phone? Am I paying it via instalment or upfront? Am I done paying for the phone, if via a plan?
- How long do I intend to keep my phone? Apple users are said to use their iPhones longer than their Android counterparts.
- Do I want coverage for my other electronics?
Everyone’s answers to these questions may differ because we all have different needs and lead different lifestyles.
For example, if you have an office job, are careful with your belongings and spend most of your free time indoors, it may not be worth getting mobile phone insurance.
But if you’re a full-time social media influencer whose income literally depends on your high-end phone — then maybe it’s worth springing for a comprehensive mobile insurance plan.
Which type of mobile phone insurance is the most worthwhile?
For most people on a rolling, 2-year contract, getting mobile phone insurance doesn’t make sense. You’re just gonna get a new phone after your contract ends, no?
However, if the loss or damage of your phone will cause major monetary loss (i.e. it’s not just an inconvenience) and you are at high risk of losing or damaging your phone (i.e. you’re a klutz or have an outdoors job) — then you should consider mobile insurance from an insurer.
Among the 3 options, our pick would be the DBS Mobile Protect because it also covers unauthorised cash withdrawals, PayLah! usage and expensive fraudulent phone calls. At $180 a year, it’s not cheap, so you’ll need to decide if it’s worth it.
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